Turkey State Bank v. Estelline State Bank

Prior to December 21, 1920, the Turkey State Bank was operating a bank under the banking laws of Texas, and was protected by the state guaranty fund. J. H. Fry was its cashier and managing officer. At the same time the Esteliine State Bank was engaged in the banking business at Estelline, Tex., with J. W. Moore its president and managing officer. In the trial of this case in the district court, certain facts were agreed to as follows:.

On August 13, 1920, the Estelline State Bank loaned the Turkey State Bank $10,000, with interest at the rate of 7 per cent, per annum. On November 5, 1920, the…